Fay and Richwhite were also involved in a series of transactions between 1986 and 1993 involving their companies European Pacific Investments; Capital Markets; Fay, Richwhite; the Bank of New Zealand; Tranz Rail; and Telecom New Zealand, transactions in which they personally gained over half a billion dollars at the same time as their minority shareholders lost NZD$277 million.[1] Fay and Richwhite also made NZD$274 million from sales of Telecom New Zealand share options in September 1993 without having to put up any capital in advance.[1]

Both men relocated to Geneva in the late 1990s and Richwhite has since moved to London.

Fay and Richwhite were advisers to the New Zealand Government on New Zealand Rail Limited from 1990 to 1993 and then distanced themselves from the arrangement to sell the SOE. The Bolger National governmentprivatised New Zealand Rail Limited in 1993. The company was sold for $328.3 million[2] to a consortium named Tranz Rail Limited, made up of merchant bankers Fay, Richwhite & Company (31.8% via the investment company Pacific Rail, later renamed Midavia Rail), the American railroad Wisconsin Central (27.3%), Berkshire Partners (27.3%), Alex van Heeren, the owner of Huka Lodge, 9.1% and Richwhite family interests, 4.5%. Tranz Rail borrowed $223.3, and its shareholders contributed $105 million to the acquisition price through the purchase of 105 million Tranz Rail shares at $1 each.[2]

In late 2004, the New Zealand Securities Commission launched an investigation into the company regarding alleged insider trading. In June 2007 David Richwhite, (along with his shell company Midavia Rail, formerly Pacific Rail) agreed to pay NZ$20 million, but did not admit liability for the claims.[3]